Zacks_Analysts' Blog : Northrop Patents Module Design - Analyst Blog

Northrop Grumman Corporation (NOC) has patented its new design for removable electronic modules. The company received the U.S. Patent Number 7,995,346 for the "ruggedized, self-aligning, sliding air seal for removable electronic units". The new design will improve air cooling of advanced electronic modules that incorporate an air-flow-through, compact core style heat exchanger design.

Northrop Grumman said that the invention conforms to VITA 48.5, the mechanical standard which governs electronic plug-in units that use air-flow-through cooling. Northrop Grumman stated that it is now looking to licensing the technology to other companies in both the military and commercial electronics markets.

Los Angeles-based Northrop Grumman is a leading global security company providing innovative systems, products and solutions in aerospace, electronics, information systems, and technical services to government and commercial customers worldwide.

Northrop Grumman, in March 2011, separated its Shipbuilding segment through a spin-off of its subsidiary, now named Huntington Ingalls Industries Inc. (HII). It operates major shipyards in Louisiana, Mississippi and Virginia.

Northrop Grumman has a strong presence in Air Force, Space & Cyber Security programs. Its product line is well positioned in high priority categories, such as defense electronics, unmanned aircraft and missile defense.

Revenue and earnings growth continue to be driven by its strong presence in the current focus areas of cyber security, modernization of defense and homeland security assets, intelligence, surveillance and reconnaissance systems, advanced electronics and software development.

However, the positives are offset by apprehension regarding defense cutbacks on high-cost platform programs, over-exposure to the DoD budget, lower backlog, cost over-runs and reductions in Afghanistan and Iraq operations.

Thus, in the near term, we do not find any catalyst for the company and expect it to perform in line with the broader market. The company presently retains a short-term Zacks #3 Rank (Hold) that corresponds with our long-term Neutral recommendation on the stock.

Northrop Grumman is a leading global security company providing innovative systems, products and solutions in aerospace, electronics, information systems, and technical services to government and commercial customers worldwide.